AIG Smacked With Suit Over $1.6B Settlement

Law360, New York (June 20, 2006, 12:00 AM EDT) -- Unable to leave the courtroom behind, American International Group Inc. has been hit with a new lawsuit by its largest shareholder for allegedly mishandling a $1.6 billion settlement with federal regulators related to the insurance giant’s purported multi-million dollar accounting fraud.

Starr International Co. filed suit in Delaware Chancery Court on Tuesday, seeking minutes of AIG’s corporate meetings, transcripts and other materials presented to board members that resulted in the billion-dollar settlement.

Run by former AIG CEO Maurice Greenberg, Starr is AIG's largest shareholder, possessing 300...